Fukuoka Financial : Investor Presentation in June, 2022

Investor Meeting

June 2022

Contents

Part I: Management Strategy

 Summary of Financial Results for FY2021	3,4
 Review of the 6th Medium-Term Management Plan	5
	Long-term Strategy	1: Environmental Awareness	6
		2: Long-term vision	7
		3: Three Core Strengths to be Equipped with	8
		4: Increasing Profit (through 2030)	9
	7th Medium-Term	Outline and Target Management Indicators	10
	Management Plan	Basic Strategy and Priority Initiatives	11
		Growth of Existing Businesses (Sales Division/Markets Division)	12,13
		Priority initiatives: Business process improvement - Phase 2/ Sales	14 - 16
		reform
		Priority initiatives: Strengthening of strategic subsidiaries	17
		Priority Initiatives: Challenge to New Businesses	18
		Human resources strategy	19
		Sustainability Initiatives	20
		Profit Growth	21
		Capital Policy	22,23

Part II: Minna Bank

 1-year History Since Launch Of Commercial Operation	26 - 28
 Achievement by Product	29 - 36
 Minna Bank'ｓ New Medium-Term Management Plan	37 - 39
 Loan by Minna Bank	40 - 43
 Minna Bank BaaS Business	44 - 47
 Key points regarding the target metrics of the plan	48,49

Part III: Financial Results & Earnings Projections (Reference)

 Summary of Financial Results for FY2021	52 - 54
 Earnings Projections for FY2022	55 - 57
 Net interest income	58
 Loans	59
 Deposits + CDs	60
 Securities/ Non-interest income	61,62
 Overhead Expenses/ Credit Cost & NPL	63,64
 Capital Policy	65

Part IV: Seventh Mid-Term Management Plan: Figures (Reference)

 Earnings Projections for FY2024	67
 7th Mid-Term Plan: Loans	68 - 70
Part V: FY2021 Financial Results: Figures (Reference)
 Average Balance of Loans (by Bank/ by Industry)	72,73
 Average Balance of Deposits & CDs	74
 Interest Rates on Loans and Deposits & CDs	75,76
 Breakdown of Loans and Deposits & CDs by Type	77
 Securities/ Non-Interest Income / Asset Management Product Sales	78,79
 Overhead Expenses / Credit Cost/ Non-Performing Loans / Capital	80,81
Adequacy Ratio
Part VI: Kyushu Economy (Reference)
 Market Share	83
 Kyushu Economic Indicators	84 - 90	1

Part I: Management Strategy

Summary of Financial Results for FY2021

Profit & loss (3 banks total)

													(¥ bil.)
					3 banks non-consolidated	Bank of Fukuoka	Kumamoto Bank		Juhachi-Shinwa Bank
	[Compared to the projection of		total	(non-consolidated)	(non-consolidated)		(non-consolidated)
		Nov. 2021]		FY2021	YoY chg.	FY2021	YoY chg.	FY2021	YoY chg.	FY2021	YoY chg.
Gross business profit			204.9	2.4	137.9	4.1	19.4		0.5	47.6	- 2.2
	Net interest income	184.8	5.9	121.7	6.5	18.4		0.6	44.7	- 1.3
		Domestic			169.7	2.3	109.3	3.4	18.4		0.6	42.0	- 1.7
		International			15.2	3.6	12.4	3.1	0.0		- 0.0	2.8	0.4
	Non-interest income	20.1	- 3.5	16.3	- 2.5	1.0		- 0.1	2.8	- 0.9
		Net fees and commissions	24.9	4.4	18.9	3.2	1.3		0.3	4.8	1.0
		Specified trade income *	3.2	0.6	3.0	0.4	0.1		- 0.0	0.1	0.3
		Bond-related income	- 8.0	- 8.5	- 5.6	- 6.0	- 0.4		- 0.4	- 2.1	- 2.1
Overhead expenses (-)	115.4	- 6.9	67.0	- 1.4	13.1		- 0.2	35.3	- 5.4
Actual business profit	89.5	9.3	71.0	5.5	6.3		0.7	12.2	3.2
Core business profit	[+35]		97.5	17.9	76.5	11.5	6.7		1.1	14.3	5.3
Other operating profit (loss)	3.2	21.9	3.4	13.3	0.5		0.2	0.6	7.5
Ordinary profit			91.9	18.2	73.3	7.7	6.8		0.9	11.7	9.7
Extraordinary profit (loss)	- 1.0	0.7	- 0.2	0.0	0.0		0.2	- 0.9	0.5
Income (loss) before income	90.9	19.0	73.1	7.7	6.8		1.1	10.9	10.2
Income taxes (-)			22.1	7.5	20.4	4.4	1.7		0.6	0.0	2.5
			[+4]		68.8	11.4	52.8	3.3	5.1		0.4	10.9	7.7
Credit cost (-)	[+17]		1.5	1.3	0.5	- 1.9	- 0.9		- 0.0	2.0	3.2

Point１ Core business profit was 97.5 billion yen

• YoY chg. +17.9 billion yen

• In addition to the increase in net interest income, service fee income such as asset management fees increased
• Expenses decreased year-on-year due to the effects of the integration of Juhachi-Shinwa Bank

• +3.5 billion yen compared to guidance

Point２ Transfer of 1.5 billion yen to credit cost

• YoY chg. -1.3 billion yen
• +1.7 billion yen compared to guidance

• Remained at a low level with 1.5 billion yen despite moderate COVID-19 impact.

Point3 Net income was 54.1 billion yen

Profit & loss (FFG consolidated)

	[Compared to the projection of	FY2021	YOY chg.
		Nov. 2021]
	Gross business profit		221.1	+3.9
	Actual business profit		78.3	+9.5
	Core business profit		86.3	+18.0
	Ordinary profit	[-23]	76.1	+15.7
	Consolidated net income **	[+11]	54.1	+9.5
	* Excluding Bonds ** Net income attributable	to owners of	the parent

adjustment

Consolidation

	Net income (3 banks total)	68.8
	FFG non-consolidated	-10.0
	Adjustment related to Minna Bank	-5.9
	Subsidiary income	2.3
	Securities adjustment, etc.	-1.0
	FFG consolidated net income	54.1

• YoY chg. +9.5 billion yen YOY
• +1.1 billion yen compared to guidance

• The period ended with stronger results compared to both the previous period and guidance due to improvement in extraordinary profit / loss from decreased integration-related expenses and the healthy core business profit as stated above.

3

FY2021 Financial Results: Factors for YoY Changes

• Core business profit was 97.5 billion yen, up 17.9 billion yen year-on-year and up 3.5 billion against guidance, with both net interest income and non-interest income steadily increasing.
• Consolidated net income increased by 9.5 billion yen year-on-year to 54.1 billion yen also due to the drop in integration-related expenses.

FY2021 Actual (Core business profit)

	Core business profit: ＋17.9	[＋3.5	Compared to the previous disclosure]
	Net interest income: ＋5.9	Non-interest income: +5.0

	Domestic interest on					+6.9	97.5
	deposits and loans -7			+2.0
					+6.6	+3.0
79.7		＋4.2	＋0.2
-5.1

FY		on Interest CDs	/ securities Marketable .etc segment, International	and trust investment from Fees insurance		Expenses	FY
2020		2021
results		results
			deposit	•	Personnel costs:
				+2.0
			•	Property cost: +3.6
			and
			•	Tax: +1.3
loansinterestImpactlowerof of	accumulationvolumeLoan		incomesinterestOthernon-
•	Domestic securities: -1.4
•	Domestic, Others: +4.3
•	International loans: -0.3
		•	Procurement etc. in			・ Investment trust: +3.0
				・ Insurance: -0
			international division: ＋3.8

(¥ bil.)

FY2021 Actual (Consolidated net income for the period)

		YOY+9.5 (After tax)
	＋17.9	＋10.7

		-7.5	54.1
	-8.3
44.6		-2.0
	-1.3

FY	securitiesMarketable(loss)Profit	Credit	lossesextraordinaryorUnusual			FY
profitbusinessCore	taxesofExpense	.etcconsolidationforAdjustment	2021
・ Rating fluctuation +7.7
2020		cost
results					results
		・ Collection etc. +4.6
		･ FL reserve -15.1
・ Bonds -8.5		・ Effect of COVID-19 +1.4
・ Stock +0.2		etc.

・ Integration-relatedcosts +6.4

・ Retirement benefit expenses +2.7, etc.

4